Be the smartest applicant for a two wheeler loan


05 Jun 2023

Learn about Two Wheeler Loan Application

If you have been eyeing a bike but don't know how to find funds for it, applying for a two-wheeler loan is an excellent option to consider. A two-wheeler loan makes it easier to buy your preferred ride without having to shoulder the entire amount at once.

Here are a few pointers to consider before applying for a two-wheeler loan:


Though different lenders can have different eligibility criteria, some standard requirements are commonplace.

• You must be a minimum of 21 years old.

• You need to be employed for at least a year before applying for a bike loan with a minimum income ranging between INR 72,000 and INR 1.5 lakh per year.

• The loan must be repaid in full before reaching the age of 60 (or 65 if you are self‐employed).

• You must declare that you are a resident at your current residential address for at least one year before you apply for your two-wheeler loan.

Credit Score

CIBIL (Credit Information Bureau (India) Limited) scores range from 300 to 900. A good CIBIL score of over 700 is required to be eligible for a loan. Also, high CIBIL scores can get you low-interest rates on your loan. This score can be calculated with a small charge by any bank, financial service provider, or online lending market. A good CIBIL score tells the lenders that you're a low-risk borrower and are more likely to repay your loan on time. If you have a pretty low CIBIL, you can improve it by paying your loans & bills on time, maintaining an unfaltering credit history, and keeping your credit utilization low.


Two-wheeler loan lenders typically need documents to process your application, including identification, income, address, and photographs. These would include the original and photocopies of your Voter ID card, PAN card, Aadhar card, Electricity bill, Rent Agreement, home ownership documents, bank passbook, income affidavit, and photographs not older than three months. Again, like eligibility, documentation requirements vary by lender.

Interest rate research

It's useful to compare and contrast the interest rates that different brick-and-mortar and online banks charge for different versions. The interest rates can vary between 8 and 17 percent based on the above factors, your choice of motorcycle, the ability to repay, the employer you have, and the lender you provide. Some banks also offer reduced rates and reasonable bike insurance online policies for well-informed customers. So, you should speak to your concerned motor insurance company for similar bike loan interest rate.

Processing fees & other charges

You might be required to pay an upfront processing fee, which varies with the lender. Processing fees could reach as high as 3% of the total loan amount. Additionally, like interest rates, the holidays bring a lot of promotional programs that can reduce or completely invalidate the processing fees. The prepayment fees charged by your lender can negatively affect your actual expenses. Moreover, get to know about bike loan interest online along with the loan, as it is a critical aspect.


Consider these key aspects before finalizing your two-wheeler finance. Also, mark your purchase with the festival period like Diwali and Christmas, as festivals bring special discounts. Now you can rest easy that you did your due diligence before taking up your two-wheeler loan. Also, do not forget to insure your bike with reasonable bike insurance that suits your requirements.

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Team Kotak GIC

The content of this blog has been created and carefully reviewed by the esteemed team at Kotak General Insurance, with the sole purpose of providing valuable guidance and sharing insights on the importance of general insurance. Our objective is to assist users in making informed decisions when purchasing or renewing insurance policies for their cars, bikes, and health. Our expertly curated information aims to empower our readers with the knowledge they need to protect their valuable assets and financial interests.